Silicon Valley Bank UK Limited (SVB UK) will be purchased by HSBC UK Bank plc, a ring-fenced unit of HSBC Holdings Plc, for £1. As of March 10, 2023, the unit had deposits of about £6.7 billion and debts of about £5.5 billion.
SVB UK reported a profit before tax for the fiscal year that ended on December 31, 2022, of £88 million. The estimated tangible stock for SVB UK is £1.4 billion. In due time, the precise calculation of the acquisition’s gain will be made available. The parent businesses of SVB UK are not included in the transaction’s assets or liabilities. The deal is finished right away.
According to a statement from HSBC, existing funds will be used to pay for the purchase.
Noel Quinn, CEO of HSBC Group stated that the acquisition makes excellent strategic sense for the company in the UK and It improves the company’s ability to service innovative and quickly expanding businesses, including those in the technology and life sciences sectors, both domestically and abroad and strengthens the commercial banking franchise. He added that his team is warmly welcomes SVB UK’s clients to HSBC and looks forward to assisting them as they expand both domestically and internationally.
Noel Quinn concluded by saying that the customers of SVB UK can carry on banking as usual, secure in the knowledge that their deposits are protected by HSBC’s strength, safety, and security. He also mentioned that they are thrilled to start collaborating with the SVB UK employees who will now be part of HSBC.
